Bundesbank

The Deutsche Bundesbank, commonly referred to as the Bundesbank, is Germany’s central bank and a core part of the Eurosystem and the European System of Central Banks. It was established in 1957 to replace the Bank deutscher Länder and to help safeguard price stability in the Federal Republic of Germany. The bank is headquartered in Frankfurt am Main, with regional offices across the country.

Its principal responsibilities include contributing to the formulation and implementation of monetary policy in cooperation with the European Central Bank (ECB) as part of the Eurosystem, with an overarching aim of maintaining price stability. The Bundesbank also supports financial stability, oversees the integrity of the payment and settlement systems, and manages Germany’s foreign exchange and gold reserves. It provides and processes cash, including the distribution of euro banknotes and coins, and supplies banking services to the government and to credit institutions. In addition, it conducts economic research and statistical analysis to inform policy decisions.

Governance is organized under the Bankgesetz, with a President and a board that oversees the institution’s operations and an independent role in monetary policy. The Bundesbank operates within the framework of the Eurosystem, where the ECB sets monetary policy for the euro area and national central banks implement it domestically. It also participates in the broader European System of Central Banks, contributing to financial stability, oversight support, and the transmission of policy outcomes into the German economy.